The Understandable Guide to Startup Funding Stages: Series A, Series B, Series C

September 12, 2022


Starting a business is difficult. As the founder of a startup, you are concentrated on creating your product, selecting top staff, and securing funding for your company. Your startup can be financed in a few different ways. Most companies expand their businesses through personal or family and friend funds, client revenue, debt funding, or venture capital.

A startup with an excellent concept or business plan wants to set up its operations. due to the generosity of friends, family, and the founders' own financial resources, the company has grown slowly from its modest beginnings while demonstrating the value of its model and goods. With time, the company's clientele expands, and its operations and goals grow as well. The company has quickly risen through the ranks of its rivals to achieve a high valuation, creating opportunities for further growth that could involve adding new facilities, personnel, and possibly an IPO (IPO).

Seed, Series A, Series B, Series C, and so on are a few of the several funding tiers for startups. Startups should be aware of the fundraising rounds they will go through, which are often dependent on the maturity and development of the business at the time.

In this article, we will briefly talk about funding rounds for startups and guide to understanding funding stages such as series A, series B, and series C.

Table of contents: 

  1. What are the funding rounds for startups?
  2. What is series A funding?
  3. What is series B funding?
  4. What is series C funding?
  5. Conclusion

  1. What are the funding rounds for startups?

Depending on the sector and the level of investor interest, businesses may be eligible for types of funding rounds. Startups frequently receive "seed" capital or angel investor money at the beginning of their operations.

Following these funding rounds, Series A, B, and C funding rounds as well as other efforts to raise money may be made, as necessary. A business that determines to bootstrap, or simply survive off of the kindness of friends, family, and the depth of their own pockets, will not do, needs Series A, B, and C funding.

Series A, Series B, and Series C funding may be acquired in more than one round. Instead of being acquired one after the other, they are referred to as A, B, and C depending on the stage of development the firm is in when the funding is obtained. If a startup is successful, it may anticipate going through each step of funding, from early seed capital through Series C funding. For the aim of growth, the majority of businesses will frequently obtain new finance.

  1. What is series A funding? 

Series A funding is the initial phase following the seed stage. Having a strategy for creating a business model that will yield long-term profit is crucial in this phase. Seed firms frequently have fantastic concepts that attract a sizable number of devoted users, but the company is unsure of how it will monetize the business.

Series A rounds typically raise between $2 million to $15 million, however, due to high tech industry valuations or unicorns, this amount has generally increased. The typical Series A funding amount in 2021 was $10 million.

Investors aren't simply searching for exceptional ideas in Series A investment. Instead, they are seeking businesses with innovative ideas and a solid plan for converting those ideas into lucrative ventures.

  1. What is series B funding?

Series B rounds are all about moving businesses beyond the development stage and into the next phase. Startups are assisted by investors by their increased market reach. Companies that have undergone Series A and Seed fundraising rounds have established sizable user bases and shown investors that they are ready for success on a broader scale. The company will need Series B capital to expand in order to handle this level of demand.

The development of a team and the creation of a great product involve top-notch talent acquisition. A company spends a few pennies to grow its customer base, sales, advertising, technology, support, and staff.

Companies undergoing a Series B investment round are typically well-established, and this is reflected in their valuations, which typically range from $30 million to $60 million.

  1. What is series C funding?

Companies that secure Series C capital are already quite successful. These companies look for additional money in order to assist them to develop new products, grow into new areas, or even buying other companies. In Series C rounds, investors put money into the core of profitable companies in an effort to get back more than twice as much. Scaling the business and achieving the best possible growth are the main goals of the Series C fundraising.

Buying another firm might be one strategy for a corporation to grow. Consider a fictitious business that aims to produce meat-free alternatives. If this business receives a Series C capital round, it will have probably already achieved levels of product sales in the US that are unheard of. Targets have likely already been met by the company from coast to coast. Investors have a reasonable expectation that the company will succeed in Europe since they have faith in the market analysis and business plans.

Many of these businesses use Series C capital to increase values before going public. Companies currently enjoy higher valuations. Companies seeking Series C capital must have well-established, reliable revenue streams, solid client bases, and histories of expansion. Companies go for a series D round or IPO after a series C round of funding.

  1. Conclusion 

In conclusion, in this article on startup funding guide, one should gain an understanding of the differences between these capital-raising rounds can aid in your ability to interpret startup news and assess the potential of entrepreneurial ventures. A typical startup goes through a series of development and growth stages, and according to their growth stages funding rounds are raised as we rightly saw in this article.




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Lower TCO: Cloud GPUs require no upfront investment, making them ideal for companies that are looking to reduce their overall capital expenses. Furthermore, the cost of maintenance and upgrades is also low since it takes place in the cloud rather than on-premises.

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What is a Strong Dollar?

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Increase in Cloud Costs Due to Strong Dollar

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According to the data in the table above, Indian E2E Cloud Services are much cheaper than their American equivalents. The difference in price between some of these options is substantial. When compared to the prices charged by suppliers in the United States, E2E Cloud's bandwidth costs are surprisingly low. Although not all E2E Cloud services will be noticeably less expensive. Using Indian services, however, has an additional, crucial perk: data sovereignty.


The price of cloud services will rise as the US Dollar appreciates. Indian businesses will need to find ways to counteract the strong dollar's impact on their bottom lines. To do this, one must use E2E Cloud. The availability of E2E Cloud services in INR currency is a bonus on top of the already substantial cost savings. An effective protection against the negative effects of a strong dollar.

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And CEOs are the primary motivators and decision-makers in any major shift or technological migration in the organization. In the twenty-first century, which is a data-driven century, it is up to the company's leader to decide what and how his/her organization will perform, overcome the risk and succeed in the coming days.

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As the saying goes, the more you avoid the risk, the closer it gets. So, if CEOs and their management teams have yet to take an active part or give the necessary attention that their migration journey to the cloud requires, now is the best time to start top-team support for the cloud enablement required to expedite digital strategy, digitalization of the organization, 

The CEO's position is critical because no one else can mediate between the many stakeholders involved, including the CIO, CTO, CFO, chief human-resources officer (CHRO), chief information security officer (CISO), and business-unit leaders.

The move to cloud computing is a collective-action challenge, requiring a coordinated effort throughout an organization's leadership staff. In other words, it's a question of orchestration, and only CEOs can wield the baton. To accelerate the transition to the cloud, CEOs should ask their CIO and CTO what assistance they require to guide the business on the path.

     2. Enhancing business interactions 

To achieve the speed and agility that cloud platforms offer, regular engagement is required between IT managers and their counterparts in business units and functions, particularly those who control products and competence areas. CEOs must encourage company executives to choose qualified decision-makers to serve as product owners for each business capability.

  1. Be Agile

If your organization wants to benefit from the cloud, your IT department, if it isn't already, must become more agile. This entails more than simply transitioning development teams to agile product models. Agile IT also entails bringing agility to your IT infrastructure and operations by transitioning infrastructure and security teams from reactive, "ticket-driven" operations to proactive models in which scrum teams create application programme interfaces (APIs) that service businesses and developers can consume.

  1. Recruiting new employees 

CIOs and CTOs are currently in the lead due to their outstanding efforts in the aftermath of the epidemic. The CEOs must ensure that these executives maintain their momentum while they conduct the cloud transformation. 

Also, Cloud technology necessitates the hire of a highly skilled team of engineers, who are few in number but extremely expensive. As a result, it is envisaged that the CHRO's normal hiring procedures will need to be adjusted in order to attract the proper expertise. Company CEOs may facilitate this by appropriate involvement since this will be critical in deciding the success of the cloud transition.

  1. Model of Business Sustainability 

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  1. Taking risks into consideration 

Risk is inherent in all aspects of corporate technology. Companies must be aware of the risks associated with cloud adoption in order to reduce security, resilience, and compliance problems. This includes, among other things, engaging in comprehensive talks about the appropriate procedures for matching risk appetite with technological environment decisions. Getting the business to take the correct risk tone will necessitate special attention from the CEO.

It's easy to allow concerns about security, resilience, and compliance to stall a cloud operation. Instead of allowing risks to derail progress, CEOs should insist on a realistic risk appetite that represents the company plan, while situating cloud computing risks within the context of current on-premises computing risks and demanding choices for risk mitigation in the cloud.


In conclusion, the benefits of cloud computing may be obtained through a high-level approach. A smooth collaboration between the CEO, CIO, and CTO may transform a digital transformation journey into a profitable avenue for the company.

CEOs must consider long-term cloud computing strategy and ensure that the organization is provided with the funding and resources for cloud adoption. The right communication is critical in cloud migration: employees should get these communications from C-suite executives in order to build confidence and guarantee adherence to governance requirements. Simply installing the cloud will not provide value for a company. Higher-level executives (particularly the CEO) must take the lead in the digital transformation path.

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